Re: “Save subprime borrowers, not bloated bankers” by Dean Baker
On Aug 21, 2007, at 2:34 PM, Jordan Hayes wrote:
a century worth of data is useless in this thread.
I’m saying the last 10 years or so have been anomalous; the norm is 1% annual real appreciation.
“The norm” in this case is what has happened to real estate prices in the last 100 years!? Rubbish. There’s nothing “norm” about what
has happened to real estate in the US in 100 years. You might get more traction with “post WWII” but you’ll catch my attention the most with, say, post 1968. Ah, here’s one:http://www.realestateabc.com/graphs/natlmedian.htm
Shiller’s index adjusts for quality; that sort of median index (from
the National Association of Realtors) does not. It’s also affected by
the mix of houses; Shiller’s holds that constant over time.
I’m not sure why shortening the time period gives you more reliable
results.
Doug